♪ even as china experiences ongoing economic decline, housing costs in beijing now surpass those of new york. and, according to an april 2016 announcement from the uk's global cities business alliance, they have become the most expensive in the world. a reason for this is that investors who have given up on stocks have returned to real

estate investment. ♪ prices of newly-built home in 70 major chinese cities have surged by up to 60% in the last 12 months. in fact, some housing in beijing is so costly, buyers cannot be found. property prices have gone up by more than $500 u.s. per square meter in just over one year. and the closer you get to central beijing, the higher the prices. the pricier units are almost $15,000 per square meter. the surge in prices has made it challenging for people to buy their dream home. many are moving to the suburbs, in search of affordable rent, leading to long commutes. the city's average commute time is now the second-longest in the world. people from all corners of the

country come to the capital in search of business opportunities. but, unless they are very successful, it is difficult to live here. the sudden rise in property prices in beijing has created a serious value/cost imbalance. on this episode of asia insight, we follow the lives of those in pursuit of the second coming of the chinese dream and those

whose hopes are dashed. tiananmen square is where mao tse-tung declared the people's republic of china in 1949. ever since, beijing has undergone major development as the nation's capital. in the 17th century, during the ching diynasty, beijing was buit around the forbidden city. five ring roads sur castle. a home within the second ring road is said to cost at least $1

million. the average annual salary in beijing is $7,800. only the very fortuna buy a home.

of beijing's 21.7 million residents, 38% are from rural areas. the beijing cbd, a new business center, located between the third and fourth ring roads is where 70% of foreign companies hold offices. many media outlets and communicati communication firms are also located here. one man bought a studio apartment for $500,000 u.s. in

this district a year ago. he works for a real estate agency. this studio apartment is about 66 square meters in size. he lives here with his wife. he purchased this apartment, because it was close to his office. but, if he puts it on the market now, he could sell it for more than $600,000 u.s.

he owns two other apartment units. if he sells them, they would both sell for at least $700,000 each. being born in beijing enabled him to do this. a ten-minute drive from ho's home, in the direction of tiananmen square is a

23-year-old apartment building between the second and third ring roads. this is where ho's other properties are located. his parents live in one apartment, while he rents out the other to a relative. these apartments were offered to his parents by the government, when they were forced to relocate due to urban development. his parents' old home was a stand-alone house within the second ring road. in socialist china, all housing was originally controlled by the state. and, as it still owns the land, real estate transaction become time-limited leases rather than permanent ownership.

ho's properties are both 80 square meters in size, and even though they are old, their central location will push their prices up. ho obtained rights to use these apartments in 2003. as the market economy developed, such rights were sold to tenants at affordable rates. ho and his father used their savings to purchase these two apartment units under ho's name.

due to living here, ho's assets now add up to about $1 million. but he won't sell while his parents are alive. expensive real estate, concentrated within the five ring roads is getting old, so

the balance between price and value doesn't match. to avoid overconcentration, the chinese government is planning to move some of beijing's functions to the outskirts of the city, resulting in spiraling property prices in those areas as well. meanwhile, small-to-medium-sized homes are in short supply, with nowhere for young people and singles to live. new constructions are almost always luxury properties. one company has enjoyed rapid growth by connecting young people with expensive real estate. he handles homes in about 1,000 cities and towns. on their books are older,

high-end homes that are unattractive to clients and investment companies waiting for properties to rise. they are rented out as share houses. in just five years since its founding, the company has rented out 190,000 rooms in beijing. it believes there is a future in the property business.

the company offers miamiainly high-end apartments, so apartment-sharing is becoming common among young people. many investors leave property idle, without even attempting to rent it out.

they don't believe it's worth the time and money to renovate, find tenants and deal with ensuing problems. that's why the company's service offers to renovate and conduct customer relations on behalf of the owners and guarantees income for the duration of the contract. once investors caught on to this, they wanted to put their assets to work. this property has five rooms on two floors and is ideal for use as a share house.

this young woman graduated from college last year. she's found employment and is looking for a room close to her company.

daxing district. prompting more development. housing prices have risen by 30% in just one year. in the last ten years, the population has exploded from 560,000 to 1.56 million. real estate companies in the center of daxing district are flooded with people who want to move here or invest before housing costs increase even more.

here with his family, this man wants to view a property right away, if it fits hess criteria. he and his wife work at elementary schoolteachers in a small village on the outskirts of daxing. he will use his savings for a

down payment. in china, home buyers cannot take out loans if they don't have the designated down payment. he is prepared to put down $150,000. which means he can only buy a property that costs under

$330,000. in theory, he doesn't have enough money to buy a home in the region of his choice. he eventually finds a home he can afford, so he decides to see it in person with his family. the house is located about ten minutes away by car from the real estate agency. it's a little far from the station and the shopping mall. the building has six storeys and was built 20 years ago. the apartment costs $330,000. it's a bargain for this area.

but the building looks a little run down. there are five flights of stairs in the dark at the back of the entrance. there are no elevators. the real estate agent says this popular apartment was viewed by 12 clients the day before. the rooms have been renovated and are ready for occupation. the 63 square meter home has a

living room, a bedroom and a children's room. the children's room faces north. he and his wife earn a combined annual income of $20,000 u.s.

it would take almost 30 years to pay back the mortgage, even with a payment that is one third of their combined income. one month later, the price of this property rose by more than $30,000.

the almost abnormal surge in real estate prices can be a once in a lifetime opportunity for people with money. but for people who have little, it only makes life harder. this is true especially for young people hoping to get married. buying a first home is a serious matter. in china, owning a home and a car is a status symbol for men. without such assets, future in-laws would not be happy. li moved here two years ago in search of work. he has a girlfriend he wants to marry in the near future. at the moment, he lives in a share house with friends to save money. his monthly income from an i.t.

firm is $2,600, about five times higher than when he lived in the countryside. he is saving half of that income for his future marriage. li cuts costs as much as possible, including food expenses. but it will still take ten years for him to save enough money for a down payment on a home. li and his girlfriend are now thinking of renting a new apartment with the money they've saved so far. although he dreams of purchasing a home before he marries, the reality is bleak.

li's girlfriend moved to attend university in beijing. she now works as an interior designer and met li through a friend.

li came to beijing in search of a wealthy life. but his hopes for marrying, buying a home and rearing children here have been dashed.

according to recent figures, there are more billionaires in china than anywhere else in the world. owning a home in beijing is a major status symbol and the dream of many chinese people. but, it's a dream that only few can attain.

[ mid-tempo music plays ] steves: riding this gondola, you soar, landing in the sleepy, unpromoted village of gimmelwald. in 30 years of researching guidebooks, i've found hidden gems like this in every country. gimmelwald would have been developed to the hilt, like neighboring towns, but the village had its real estate declared an avalanche zone, so no one could get new building permits. the result? a real mountain community -- families, farms, and traditional ways. choosing places like gimmelwald and then meeting the people, you become part of the party rather than just part of the economy.

this is a realistic goal for any good traveler. eins, zwei, drei. man: [ chuckles ] steves: take a moment to appreciate the alpine cheese. so, older is better? man: oh, yes. -woman: i don't know. -man: oh, yes. woman: for me, it's the younger one. steves: once you're off the tourist track, make a point to connect with the living culture. pitch in, even if that means getting dirty. here, farmer peter is making hay while the sun shines.

very warm welcome to nhk "newsline." the u.s. secretary of state is trying to clarify president donald trump's strong warning issued to north korea. on tuesday, trump said if pyongyang continues to make threats, the country will be met with fire and fury like the world has never seen. >> so i think the president, what the president is doing is sending a strong message to north korea in language that kim i don't thin jong-un would understand. >> just hour after trump's warning, north korea announced it is examining a plan to strike the pacific